Personal Account:-
- Receiver Debit and Giver Credit
- The recipient is debited.
- The person giving is credited.
Example:- Cash received from Suresh Gaur:- 10000/-
Suresh Gaur – Personal Account – Credit
Cash– Real Account- Debit
Cash Account 10000
To Suresh Gaur 10000
Real Account:-
- Incoming Debit and Outgoing Credit
- The item coming into the business is debited.
- Goods going out of business are credited.
Example:- Furniture purchased – 4000/-
Furniture – Real Account – Debit
Cash – Real Account – Credit
Furniture Account Dr. 4000
To Cash Account 4000
Nominal Account:-
- Expenses and Losses, Debit & Income and Profit, Credit
- All expenses and losses are debited.
- All profit and income are credited.
Example:- Payment of salary 8000/-
Salary – Nominal Account – Debit
Cash – Real Account – Credit
Salary Account Dr. 8000
To Cash Account 8000
